Overview

Coinbase was launched in June 2012, and the company is located in San Francisco, US. The exchange operates in 32 countries, and by 2013 it was one of the largest cryptocurrency exchange in the world. Coinbase has experienced rapid growth over the years and was founded by Fred Ehrsam and Brian Armstrong. The website offers a developer API, wallet, an exchange and it is backed by trusted investors. Coinbase Company operates two independent brands, and the first one is the Global Digital Asset Exchange (GDAX) which is an advanced Crypto trading platform. On the other hand, there is the Coinbase platform which is retail consumer oriented for purchasing Bitcoin with fiat currency. Coinbase has developed tremendously over the years, and it offers only four cryptocurrencies: BTC, LTC, ETH and BCC.

Features

Coinbase Legitimacy: Coinbase is one of the truly trustworthy exchanges available out there. The company's buy and sell option is available in 32 countries worldwide. The exchange can be used to do several transactions in other countries including storing, sending and receiving of funds. The fact that Coinbase operates in the US means it must comply with US laws and regulations. Coinbase complies with regulatory bodies for example State money transmission laws and regulations, the USA Patriot Act and Bank Secrecy Act. Coinbase has over 40 licenses to operate in 30 states in the US alone, but beginners are encouraged to check if Coinbase can operate in your country before signing up.

Banking options and limits: Coinbase is an exchange that accepts fiat currency in exchange for the cryptocurrencies available. The fiat currencies Coinbase accepts are USD, GBP, and EUR. The available payment options at Coinbase are credit/debit card, bank transfers, SEPA for European citizens and PayPal. Coinbase implements weekly buy and sell limits that are automatically calculated. It is done for security, fraud prevention, and regulatory compliance measures. The limits are calculated based on the user's account information, for example, the purchase history and the account verification. The limits can be increased by providing more personal details such as submitting a photo ID.

Fees: The commission structure system is one of Coinbase biggest disadvantage for traders. The platform operates in many countries and offers a range of payment options as well as currencies hence relatively high fees. Fees are charged for every transaction, and a minimum fee is applied for transactions under $200, and a percentage fee is used for transactions over $200. A 1.49% conversion fee is used for transactions over $200. For transactions under $200, a base rate of 4% is applied, but the rate also varies based on state, region or country. Users are not charged any fee for using the platform's wallet.

Instant exchange and customer support: Coinbase offers a feature called instant exchange to its users which converts fiat currency to cryptocurrency. The service does not attract any extra fees and makes cryptocurrency purchase seamless. The exchange also has an active support team with the staff's name listed on their website. It operates a real-time chat program, email support, and an extensive FAQ. The customer support has however received some mixed reviews from the crypto-community concerning the delay in replies.

Security: Coinbase is backed by trustworthy traders and it is considered one of the safest exchange. It adheres to the Know Your Customer (KYC) program and complies with the rules and regulations. The platform stores 98% of customers’ cryptocurrency in secure offline storage. The crypto funds are held on multiple paper and hardware wallets. Its safety procedure protects customers’ funds from loss or theft by hackers. Users can keep track of their accounts and are notified if a new IP address or device attempts to access their account. You can also set the 2-factor authentication method and set up google authenticator for additional security.

Advantages

Instant buy feature

User-friendly interface

Accepts bank and credit card transfers

Insured Bitcoin deposits

It is a trustworthy and regulated company

Supports GDAX for trading

The platform is secure

Disadvantages

High fees on the network

Accounts are monitored

Accounts have limits

Restricted in several countries

How to Buy

Coinbase provides a simple and easy way of buying bitcoins instantly with a credit/ debit card. Here is the step-by-step instruction to help make the buying process easier for you.

Step 1: Create an Account on Coinbase.com: Once the account is created, verified the personal details, login and upload the required ID’s. You may proceed to the second step.

Step 2: Navigate to account settings: Click your name in the top right corner, there should be a drop-down menu where you can click the “Setting.” After that, you need to click the “Payment Methods” tab and then, “Add Payment Methods”.

Step 3: Click “Debit/Credit Card” for your payment methods.

Step 4: Provide/ Enter your Credit/Debit Card Information.

Step 5: Confirmation: You should see a pop-window that the credit/debit card is successfully added.

Step 6: Buy Bitcoin: Go to buy page, and you should see the widget for purchase bitcoin. Once, the preferred amount is entered, you can now click “Buy Bitcoin Instantly,” and it will then delivered to your Coinbase Wallet.

Storage

Unlike others crypto-currency exchanges and trading that uses an associated crypto-currency storage or wallets. Coinbase is also crypto-currency storage that has their own three different type of wallets: Coinbase Bitcoin Wallet, Coinbase Vault, and Multisig Vault.

Coinbase Bitcoin Wallet: The Company has the full control of your Bitcoin and entrusts Coinbase to keep and secured your coins.

Coinbase Vault: A unique solution of securing a larger amount of Bitcoin that is protected by multiple approvers.

Multisig Vault: A complete control of their funds. Where Coinbase has one key, one key is shared, and the account holder holds the third key.

Conclusion

Coinbase is one of the best exchanges on the crypto-space and its target is beginners in the industry. Beginners will find an easy to use interface and ease in buying cryptocurrency instantly. The supported GDAX platform also allows trading and access to more cryptos. The exchange allows for higher buy and sells limits, but the fees are relatively high.